Back Office Functions for Hedge Funds
The back office functions for Hedge Funds are substantially different from normal back office functions because:-
Given the typically smaller size of Hedge Fund Back Offices there is a need for both Back Office personnel and Hedge Fund Managers to understand all aspects of the Back Office processes in order to ensure that information given to traders, Hedge Fund Managers, the investors and others involved is both timely and accurate. In addition, knowledge of the process is essential to minimise errors and to keep transaction costs under control.
This 2-day course involves all areas of likely Hedge Fund Back Office Operations.
A basic knowledge of Equities, Bonds, Futures and Options or Derivatives is assumed as well as some familiarity as to what the Back Office does. However, delegates are not expected to have detailed knowledge of all areas covered.
Delegates unfamiliar with Futures or Options are recommended to attend our Futures Primer and/or Options Primer courses according to their current level of knowledge.
-Types of hedge funds. Background to the industry.
-You are on your own. How to survive without the support structure of a big firm.
-Soft Commissions: What services can your brokers provide for you under various regulatory regimes
-Identifying key issues
-Critical control factors and information needed
-Example organisation structures.
Prime Broker Arrangements
-Selecting a prime broker. What to expect in terms of services, information and fees.
-Working with a prime broker. Typical information.
Stock Borrowing & Funding
-Leverage methods and control
Product overview and the issues each product will cause
Futures & Options
-Trade reporting to the brokers
-Keeping track of commission costs
-How to calculate spaw margining
-Importance of FIFO
-What are CFDs
-Why they are used
-Tracking of interest, stock borrowing costs
-Clean and dirty prices
-Interest Calculations: how to use Bloomberg to calculate settlement amounts
-Validating the documentation
-Definition of terms traders will use
-Managing fx risk
-Importance of sound and timely reconciliations
Controlling the Traders
-Blotters and tickets
-A working partnership
-Common errors or mishaps
-Processing and accounting for cash movements
-The importance of cashflow management
Regulatory Requirements - An Overview
Investment Education PLC